Wavecom swings to loss; reiterates Gemalto bid inadequate

RobertDaniel

TEL AVIV (MarketWatch) -- Wavecom SA,
wvcmfr:007306
the Issy-les-Moulineaux, France, provider of automotive-related technology, swung to a third-quarter loss from a year-earlier profit on 45% lower revenue and reiterated that Gemalto's takeover proposal is inadequate. The loss was 4.1 million euros ($5.3 million), or 0.27 euro a share, against net income of 3.3 million euros, or 0.18 euro a share, in the year-earlier period. Shares outstanding fell 19% to 15.2 million. Revenue fell to 28.9 million euros from 52.4 million. The results reflect the global economic slowdown, which hurt revenue in autos and alarms, Wavecom said in a statement on Wednesday. In addition, two major contracts ended, on in third-quarter 2007 and the other in second-quarter 2008. Prices for products have dropped, and foreign-exchange fluctuations also hurt results, Wavecom said. Wavecom said it has put in place a plan to cut 12 million to 16 million euros of costs a year. Early this month, Gemalto,
GTOFF, +7.96%fr:gto
the Meudon, France, provider of digital-security solutions, proposed to pay 7 euros a share for Wavecom.

Intraday Data provided by SIX Financial Information and subject to terms of use.
Historical and current end-of-day data provided by SIX Financial Information. Intraday data
delayed per exchange requirements. S&P/Dow Jones Indices (SM) from Dow Jones & Company, Inc.
All quotes are in local exchange time. Real time last sale data provided by NASDAQ. More
information on NASDAQ traded symbols and their current financial status. Intraday
data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. S&P/Dow Jones Indices (SM)
from Dow Jones & Company, Inc. SEHK intraday data is provided by SIX Financial Information and is
at least 60-minutes delayed. All quotes are in local exchange time.